February 21, 2023
Merchant and Gateway Provider Agreements and Credit Card Fee Structure
Tyler Cashiering Compatible Merchant and Gateway Providers TylerPay – Real Time Integration with:
Tyler Munis
Cashiering
Accounts Receivable / General Billing
Utility Billing
Tyler EnerGov
Public Works – Engineering
Community and Economic Development – Building and Planning Global Payments Integrated – Integration with Parks and Recreation and Downtown Parking software applications. 2 Payment Methods
Cash
Check
ACH transfers
Credit Card
eCheck (coming soon)
Note: City does not accept payments via PayPal, Venmo, Zelle, or other similar platforms. 3 Current Credit Card Fee Structure
Absorbed Model
City pays (absorbs) the credit card fees.
City’s Fees and Charges Schedule currently do not incorporate credit card fee costs absorbed by the City. 4 Estimated Annual Credit Card Fees
5 2022 Credit Card Transaction Volume
6 Blended Options A and B
Option A: Blended Structure –
City absorbs eCheck fees for utility and non-Public Works – Engineering and non-Community and Economic Development – Building and Planning customers, (The fee on eCheck would be a $1.25 flat fee.) City passes on credit card fees to customers, and
City passes on eCheck fees to Public Works – Engineering and Community and Economic Development – Building and Planning customers.
Or
Option B: Blended Structure –
City absorbs utility credit card and eCheck fees, and
City passes on non-utility credit card and eCheck fees to customers. 7 Recommendation
Provide direction with regard to an absorbed or pass model for credit card and eCheck fees:
Option A: Blended Structure –
City absorbs eCheck fees for utility and non-Public Works – Engineering and non-Community and Economic Development – Building and Planning customers. (The fee on eCheck would be a $1.25 flat fee.) City passes on credit card fees to customers.
City passes on eCheck fees to Public Works – Engineering and Community and Economic Development – Building and Planning customers.
City does not incur fees for cash, check or ACH / transfer payments initiated by customers.
City cannot currently accept payments via PayPal, Venmo, Zelle, etc.
Option B: Blended Structure –
City absorbs utility credit card and eCheck fees, and
City passes on non-utility credit card and eCheck fees to customers.
City does not incur fees for cash, check or ACH / transfer payments initiated by customers.
City cannot currently accept payments via PayPal, Venmo, Zelle, etc.
Approve and authorize City Manager or designee to execute and administer amendments and/or agreements and related documents with Tyler Technologies, Inc. and with Global Payments Integrated including renewals and/or extensions and future amendments in a form approved by City Attorney.
Authorize City Manager or designee to terminate agreements with the current merchant services and gateway providers. 8